Income Portfolio
The Income Portfolio is a diversified investment strategy focused on generating income and preserving capital. The portfolio has a high allocation to fixed income (80%) through BND and IGOV, offering stability and interest income. The remaining 20% is allocated to equities (VTI and VEA) for potential capital appreciation and dividend income. This portfolio suits conservative investors prioritizing income generation and capital preservation with modest exposure to equities for diversification and growth potential.
Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 64% |
IGOV iShares International Treasury Bond ETF | International Government Bonds | 16% |
VEA Vanguard FTSE Developed Markets ETF | Foreign Large Cap Equities | 7% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 13% |
Performance
Performance Chart
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The earliest data available for this chart is Jan 29, 2009, corresponding to the inception date of IGOV
Returns By Period
As of May 11, 2025, the Income Portfolio returned 3.05% Year-To-Date and 2.94% of annualized return in the last 10 years.
| YTD | 1M | 6M | 1Y | 5Y* | 10Y* | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | -3.77% | 7.44% | -5.60% | 8.37% | 14.12% | 10.46% |
| Income Portfolio | 3.05% | 2.69% | 1.36% | 6.70% | 1.83% | 2.94% |
| Portfolio components: | ||||||
BND Vanguard Total Bond Market ETF | 2.21% | 0.98% | 1.19% | 5.53% | -0.78% | 1.51% |
VTI Vanguard Total Stock Market ETF | -3.75% | 7.98% | -5.68% | 9.17% | 15.27% | 11.77% |
IGOV iShares International Treasury Bond ETF | 7.70% | 1.75% | 4.23% | 6.96% | -3.19% | -0.89% |
VEA Vanguard FTSE Developed Markets ETF | 12.77% | 11.62% | 8.93% | 10.01% | 11.74% | 5.66% |
Monthly Returns
The table below presents the monthly returns of Income Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 1.16% | 1.40% | -0.51% | 1.45% | -0.47% | 3.05% | |||||||
| 2024 | -0.57% | -0.15% | 1.29% | -2.89% | 2.28% | 0.73% | 2.51% | 1.87% | 1.48% | -2.67% | 1.61% | -2.31% | 3.01% |
| 2023 | 4.24% | -3.13% | 2.99% | 0.78% | -1.43% | 1.22% | 0.65% | -1.28% | -3.18% | -1.73% | 5.76% | 4.28% | 9.03% |
| 2022 | -2.79% | -1.46% | -1.94% | -5.41% | 0.62% | -3.47% | 3.51% | -3.75% | -5.63% | 0.87% | 5.21% | -1.75% | -15.39% |
| 2021 | -0.90% | -0.84% | -0.51% | 1.70% | 0.58% | 0.50% | 1.30% | 0.20% | -1.90% | 1.06% | -0.47% | 0.40% | 1.06% |
| 2020 | 1.20% | -0.47% | -3.98% | 4.12% | 1.73% | 1.19% | 2.63% | 0.74% | -0.86% | -0.83% | 3.68% | 1.47% | 10.86% |
| 2019 | 2.57% | 0.44% | 1.59% | 0.58% | 0.14% | 2.58% | -0.07% | 1.69% | -0.16% | 0.82% | 0.29% | 0.69% | 11.69% |
| 2018 | 0.63% | -1.65% | 0.40% | -0.79% | 0.39% | -0.09% | 0.48% | 0.63% | -0.40% | -2.35% | 0.77% | 0.04% | -1.97% |
| 2017 | 0.83% | 0.95% | 0.28% | 1.09% | 1.19% | 0.30% | 1.22% | 0.74% | -0.02% | 0.23% | 0.66% | 0.75% | 8.53% |
| 2016 | -0.16% | 0.85% | 2.53% | 0.78% | -0.17% | 1.69% | 1.40% | -0.34% | 0.34% | -1.73% | -1.99% | 0.54% | 3.70% |
| 2015 | 0.79% | 0.17% | -0.16% | 0.50% | -0.73% | -1.22% | 0.89% | -1.37% | 0.05% | 1.47% | -0.61% | -0.33% | -0.59% |
| 2014 | 0.30% | 1.66% | -0.03% | 0.85% | 1.07% | 0.66% | -0.82% | 1.32% | -1.60% | 0.69% | 0.76% | -0.36% | 4.54% |
Expense Ratio
Income Portfolio has an expense ratio of 0.08%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Income Portfolio is 74, indicating average performance compared to other portfolios on our website. Here’s a breakdown of how it compares using common performance measures.
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 1.00 | 1.45 | 1.17 | 0.42 | 2.54 |
VTI Vanguard Total Stock Market ETF | 0.47 | 0.83 | 1.12 | 0.51 | 1.94 |
IGOV iShares International Treasury Bond ETF | 0.72 | 1.11 | 1.13 | 0.20 | 1.41 |
VEA Vanguard FTSE Developed Markets ETF | 0.59 | 1.00 | 1.13 | 0.80 | 2.42 |
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Dividends
Dividend yield
Income Portfolio provided a 2.87% dividend yield over the last twelve months.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2.87% | 2.84% | 2.38% | 2.10% | 1.70% | 1.75% | 2.22% | 2.35% | 2.07% | 2.18% | 2.14% | 2.47% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 3.75% | 3.67% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% |
VTI Vanguard Total Stock Market ETF | 1.35% | 1.27% | 1.44% | 1.67% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% |
IGOV iShares International Treasury Bond ETF | 0.55% | 0.59% | 0.00% | 0.11% | 0.39% | 0.00% | 0.24% | 0.31% | 0.19% | 0.69% | 0.22% | 1.28% |
VEA Vanguard FTSE Developed Markets ETF | 2.91% | 3.36% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the Income Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Income Portfolio was 21.20%, occurring on Oct 20, 2022. The portfolio has not yet recovered.
The current Income Portfolio drawdown is 3.34%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -21.2% | Sep 3, 2021 | 285 | Oct 20, 2022 | — | — | — |
| -10.79% | Mar 9, 2020 | 9 | Mar 19, 2020 | 49 | May 29, 2020 | 58 |
| -5.77% | Feb 10, 2009 | 19 | Mar 9, 2009 | 18 | Apr 2, 2009 | 37 |
| -4.59% | May 9, 2013 | 32 | Jun 24, 2013 | 81 | Oct 17, 2013 | 113 |
| -4.48% | Jan 29, 2018 | 229 | Dec 24, 2018 | 42 | Feb 26, 2019 | 271 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
Diversification Metrics
Number of Effective Assets
The portfolio contains 4 assets, with an effective number of assets of 2.19, reflecting the diversification based on asset allocation. This number of effective assets suggests a highly concentrated portfolio, where a few assets dominate the allocation, potentially increasing the portfolio's risk due to lack of diversification.
Asset Correlations Table
| ^GSPC | BND | IGOV | VTI | VEA | Portfolio | |
|---|---|---|---|---|---|---|
| ^GSPC | 1.00 | -0.13 | 0.13 | 0.99 | 0.83 | 0.61 |
| BND | -0.13 | 1.00 | 0.44 | -0.12 | -0.08 | 0.54 |
| IGOV | 0.13 | 0.44 | 1.00 | 0.13 | 0.33 | 0.67 |
| VTI | 0.99 | -0.12 | 0.13 | 1.00 | 0.83 | 0.61 |
| VEA | 0.83 | -0.08 | 0.33 | 0.83 | 1.00 | 0.68 |
| Portfolio | 0.61 | 0.54 | 0.67 | 0.61 | 0.68 | 1.00 |
AI Insight on Diversification
The portfolio is moderately diversified, with a mix of fixed income and equity positions that exhibit varying degrees of correlation. The correlation matrix reveals that VTI (a U.S. total stock market ETF) and VEA (an international developed markets equity ETF) are highly correlated at 0.83, which suggests some overlap in equity exposure and slightly limits diversification within the equity portion. On the other hand, BND (a U.S. aggregate bond ETF) shows low to negative correlations with the equity ETFs (VTI at -0.12 and VEA at -0.08), which enhances diversification by providing a buffer against equity market fluctuations.
IGOV (an international government bond ETF) has moderate positive correlations with both BND (0.44) and the equity ETFs (0.13 with VTI and 0.33 with VEA), positioning it as a bridging asset that adds some diversification benefits but also links the fixed income and equity segments somewhat.
Regarding the portfolio’s correlation with individual positions, VEA (0.68) and IGOV (0.67) have the highest correlations, indicating these positions have a stronger influence on the portfolio’s overall behavior. BND’s correlation with the portfolio is lower (0.54), despite being a significant fixed income holding, suggesting it contributes to diversification by not moving in perfect tandem with the portfolio. VTI’s correlation with the portfolio is 0.61, reflecting its meaningful but not dominant role.
No single position overwhelmingly dominates the portfolio, but the relatively high correlations of VEA and IGOV with the portfolio imply these holdings have a greater impact on portfolio returns and risk. The presence of both U.S. and international equities alongside domestic and international bonds indicates a thoughtful allocation across asset classes and geographies.
In summary, the portfolio is reasonably diversified, balancing equity and fixed income exposures with generally moderate correlations. The high correlation between VTI and VEA slightly reduces equity diversification, but the low or negative correlations of bonds with equities help maintain overall portfolio balance. This structure suggests a portfolio designed to generate income with a controlled level of risk through diversification rather than concentration.